October 15, 2013 – WASHINGTON – The warnings from Wall Street are dire: A stomach-turning dive in the stock market. World economies in peril. Another recession in the United States. A replay of the 2008 financial crisis — or worse. And the date investors are worried about is fast approaching. It’s Thursday, when the United States bumps up against the $16.7 trillion limit set by Congress for the amount of money the government can borrow. Why the alarm? If Congress can’t make a deal and raise the limit, the value of United States government debt — the paper considered the safest investment on earth, the grease for the machinery of the world financial system — will be called into question. As the clock clicks toward Thursday’s deadline, signs of damage are already emerging. The Chinese, who hold more U.S. debt than any other country, have wondered aloud whether it’s time to take their money elsewhere. Consumer confidence has dropped — never a good sign with the holiday shopping season coming. And this was the warning to the Senate last week from the president of the National Association of Realtors: “It’s going to go backwards very, very fast.” He was talking about the housing market — buyers and sellers are getting nervous and canceling deals — but he might have been talking about the entire looming catastrophe if the country hits the borrowing limit. So when do things get bad? No one knows for sure, which is part of what makes Wall Street nervous. Jack Lew, the secretary of the treasury, has warned that on Thursday the government will exhaust its authority to borrow money and have only about $30 billion in cash on hand. On a busy day, the government owes as much as $60 billion in legal obligations authorized by Congress. So the government is already running on fumes. Of course, the United States Treasury isn’t a one-way account. Checks roll in every day from tax payments, including yours. The immediate problem is that the amount of money that flows into and out of the government every day swings wildly.

A lot comes in around the quarterly tax deadlines— the last was Sept. 15. A lot goes out at the first of the month for Social Security. To smooth things out, the Treasury borrows on the bond market. It accepts loans from investors, who get bonds and bills in return. That paper guarantees the holder that the government will pay the money back, plus interest. And because the United States always makes good on its bond payments — exceptions being when the country was broke after the War of 1812 and because of a paperwork glitch in 1979 — American government debt is considered the safest investment anywhere. If the government is suddenly unable to make interest payments, the value of that debt suddenly drops. The government might be able to delay the interest payments while this gets worked out in Congress. But any delay would cause damage by itself because it would dent the creditworthiness of the U.S. government, the same way your friend would consider you less creditworthy if you “delayed” paying back the $10 he lent you for lunch. The people who determine the creditworthiness of the United States are the three big rating agencies. One of them, Standard & Poor’s, caused a shock to the financial markets in 2011, the last time Congress messed with the debt limit, by stripping the U.S. of its top-notch AAA credit rating. There’s every reason to believe further downgrades are in store if the government defaults. And some investment funds are barred from holding anything less than top-rated debt, which means they could dump U.S. debt and cause its value to plummet. The Federal Reserve cannot accept defaulted securities as collateral. And trillions of dollars of other financial contracts are built on the bedrock of Treasury bonds. It doesn’t take much of a tremor to start breaking windows. -NBC

Isn’t it time to “let the chips fall”..are we not held accountable for spending anymore? Also, wall street is “fat cat market”. As long as the profiteers make and spend their money..all is ok, really? What about the 2 class system rich and poor (3rd world country), it has been tough but we need to let the chips fall. Go back to tightening the belt, developing a craft and consuming “home made and home grown” resouces. Stop the outsourcing, respect and show gratitude for our products. Why fuel more debt, fuel more power to control the “peasants” it is not a democracy anymore. Let them close down the IRS branch that took the billions (that disappeared) in the “slush fund” for the so called “obamacare”. The powers have really blackened our eye. We represent “greed” , “money”..and where in life does it bring JOY? Only the Lord brings joy and happiness. Our hope is on HIM…and I hope he restores /returns soon.

I’m very unhappy that the rich are going to make life for most in the U.S Impossible.
What do they think is going to happen?

I think when people cant pay for the home they live in or food its going to get very ugly.
I send my best wishes to the people who wont have money for food or a home because of greedy scum I hope they can work together and work it out but I don’t think the government will let that happen.

Our Gov. Of the United States will let this happen!! This is what they want,a start of the New World Government,if they go ahead an let Obomacare go into effect,this will also cause many problems for the people of America.If we can not pay for health ins.,being pushed on us by our gov.,how can we pay for the tax FINES for not having insurance,when we can not,even pay our home mortgage payments because we do not have a job!! EVERTIME OUR GOVERNMENT SCREWS UP,THE PEOPLE OF AMERICA HAVE TO PAY MORE!! I still do not understand why people from other country’s,want to keep,coming to America,for the first time in my life……I’m not Proud to be from America….if it was possible,I would move off the Grid!! But I have a family,to take care off,so I will continue to do the best I can do,till it’s time for the Good father to take me home!!